Home

BUDGET DELIVERS ON INFRASTRUCTURE

CCAA welcomes the 2018/19 Federal Budget's focus on infrastructure spending around Australia. This investment will be realised through the supply of heavy construction materials including sand, stone, gravel, cement and concrete.

The Budget has committed the Government to delivering $75 billion in nationally significant transport infrastructure projects over the next 10 years, including:

$5 billion for construction of a rail link to the Melbourne Airport;

$1.1 billion towards further components of Perth's METRONET program;

$400 million to duplicate a section of the Port Botany Rail Line and construct the Cabramatta passing loop in Sydney;

$390 million for the upgrade of the Beerburrum to Nambour Line on Queensland's Sunshine Coast;

$300 million for the Brisbane Metro project; and

$177 million for the North-South Corridor in Adelaide.

This investment follows strong infrastructure investment by many State Governments, and will increase the pressure to supply the materials to build these projects. Policies that enable efficient freight movements from quarries and concrete plants to infrastructure projects are required and critical to keeping costs down and completing projects on time.

"It is critical that all levels of government work together to support land use policies that ensure concrete plants and quarries are appropriately located, and transport policies that allow heavy vehicles to deliver these essential materials."

BUDGET OVERVIEW

As the Australian economy enters its 27th year of uninterrupted economic growth, the Government is using unexpected additional income to fund investment into infrastructure and business. The Budget is expected to be back in surplus in 2019/20.

INFRASTRUCTURE

The Budget has a 10 year funding horzion for infrastructure projects of $75 billion, including $24.5 billion of new funding. The funding is overwhelming for transport infrastructure including $7.9 billion for passenger and freight rail, $1 billion for the Urban Congestion Fund to ease congestion in cities, $3.5 billion for regional and rural road corridors, and $28.3 million for regional airstrip upgrades. Key projects in and around Australia include:

$5 billion for construction of a rail link to the Melbourne Airport;

$1.7 billion for the North East Link in Melbourne;

$3.3 billion for continued upgrades to the Bruce Highway in Queensland;

$300 million for the Brisbane Metro project;

$1.5 billion in road projects in Western Australia including for the Tonkin, Mitchell, Leach and Roe highways;

$1.1 billion towards further components of Perth's METRONET program;

$400 million to duplicate a section of the Port Botany Rail Line and construct the Cabramatta passing loop in Sydney;

$100 million for the continued upgrade to the Barton Highway corridor in regional New South Wales and the Australian Capital Territory;

$220 million for the electrification of the Gawler Line in northern Adelaide;

$177 million for the North-South Corridor in Adelaide; and

$461 million for the Bridgewater Bridge Replacement in Tasmania.

BUSINESS INVESTMENT

Small and medium sized businesses have secured tax breaks to immediately deduct spending on eligible assets up to $20,000, as well as streamlined GST reporting. The Budget has targeted investment into growing areas of the economy, with $1.3 billion into medical technology, biotechnology and pharmaceuticals. Craft beer brewers will be taxed at a lower rate to encourage competition with multinational operators.

The Government has reiterated its commitments to reduce the company tax rate to 25 per cent and have extended the $20,000 instant asset write off for businesses with annual turnover less than $10 million.

TAX RELIEF

The Government announced a seven year plan to reduce personal income tax, starting on 1 July with a new tax offset of up to $530 for middle and lower income earners, and the top threshold for the 32.5 per cent tax bracket increased from $87,000 to $90,000. This will be followed in the coming years with an increase in the 32.5 per cent tax bracket to $120,000, and the eventual removal of the 37 per cent tax bracket.